Question

I completed the beginning of the packet but need help on the blank pages

On Dec. 1, 2014, Pete Fiore opened Fiore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by 5%. The first fiscal (calendar) year will end December 31, 2014 salaried employee was hired on December 1, 2014. No benefits accrue for six months Mr. Fiore does not take a salary at this time. During the month, he completed the following transactions for the company: Dec. 1 Began business by depositing $100,000 In a bank account in the name of the company in exchange for 100,000 shares of $1 par value common stock. 1Paid the rent for his office store for current month, $10,000. 1 Paid the premium on a one-year insurance policy, $24,000. 1 Purchased computer& office equipment on credit for $41,000. S Purchased office supplies from DEF Company on credit, $1,765. 8 Paid cash for an advertisement in a local newspaper, $300. 15 Billed consulting revenue for the first half of the month, $25,000. 21 Paid DEF Company on account, $s00. 31 Billed consulting revenue for the second half of July, $35,000. 31 Declared and paid a cash dividend, $10,000. 31 Accrue one (1)month salary for sole employee paid on January 3, 2015-$8,000. 31 Accrue one (1)month payroll taxes for sole employee paid on January 3, 2015-7.65% of Salary Expense. 31 Industry history indicates 1% of sales must be accrued as provided as expense to cover expected warranty costs. The company experienced a clean month in Dec. 2014. Journalize this expense. 31 Mr. Fiore expects that uncollectible account expense will amount to .5%. (1/2 of 1%). Journalize. 31 IJCP Inc., a customer declares bankruptcy necessitating writing off the amount owed by them from A/R-$1,000. 2. Open the following accounts: Cash (111); Accounts Receivable (113); Prepaid Insurance (117); Office Supplies (119]: Computer & Office Equipment (144); Accumulated Depreciation-Computer & Office Equipment (145) Accounts Payable (212); Income Taxes Payable (213); Salaries Payable (214): Allowance for Uncollectable Accounts (114); Estimated Consulting warranty Liability (217)Common Stock (311); Retained Earnings (312); Dividends (313); Income Summary (314); Consulting Revenue (411); Salary Expense (S10)Payroll Taxes Payable (216): Rent Expense (511): Advertising Expense (512); Insurance Expense (513)-Office Supplies Expense (514) Depreciation Expense-Computer & Office Equipment (515); Income Taxes Expense (530);Consulting Warranty Expense (525); Uncollectable Account Expense (526). Payroll Tax Expense (527); Salary Expense (510). Post the DECEMBER entries to the to the general ledger accounts... ournal and 3. Using the (a) one month's insurance has expired; (b) remaining inventory of unused repair supplies, $1,000 (c)The computer& office equipment purchased on Dec. 1 has a useful life of four (4) years and a salvage value of $1,000. You must complete the depreciation schedule and divide the first years calculated by twelve (12) Reord journal entry. Use double decling method. Worksheet supplied. (d) estimated income taxes for the month, $5,000 4. From the accounts in the ledger, prepare an adjusted trial balance. (Note: Normally a trial balance is prepared before adjustments but is omitted here to save time.) 5. From the adjusted trial balance, prepare an income statement, a statement of retained earnings, and a balance sheet for December. Income Taxes is to be shown as part of total expenses 6. Prepare and post cosing entries. Explanations required. 7. Prepare a post dasing trial balance.

Answer 1

Before I proivde solution, few corrections needed in your work:
1) In Adjusting Entries
Depreciation = (41000-1000)/4 * (1/12) = 833.33 (This will have subsequent effect in traila Balance, Income statement & Balance SHeet)
2) In Trial Balance to compute Cash balance & Accounts payable you have adjusted 5000 instead of entry of 500 only.

69 Salaries Payable Account No. 214 Balance Debit Credit Credit 71 Date 72 2014 31 Salaries Expense 73 Dec. 74 Item GJ2 8,000 8,000 76 Payroll Taxes Payable Account No. 216 Balance Debit Credit Credit 78 Date 79 2014 31 Payroll Tax Expense 80 Dec. 81 82 83 Estimated Consulting Warra 84 85 Date 86 2014 31 Consulting Warranty Expense 87 Dec. Item GJ2 612 612 Account No. 217 Balance Item Debit Credit Credit GJ3 600 600 89 90 Common Stock 91 92 Date 93 2014 1 Cash 94 Dec. 95 96 97 Retained Earnings 98 99 Date 100 2014 31 Income Summa 101 Dec. 31 Dividends 102 Account No. 311 Balance Debit Credit 100,000 Credit 100,000 Item GJ1 Account No. 312 Balance Item Debit Credit Credit GJ4 GJ4 32,190 32,190 22,190 10,000